Registering a Company Under the Thailand Board of Investment

Thailand has long positioned itself as a strategic hub for businesses looking to enter Southeast Asia. A key initiative driving this effort is the Thailand Board of Investment (BOI), a government agency under the Office of the Prime Minister. The BOI offers a range of incentives to both Thai and foreign investors who meet certain criteria and are willing to invest in priority industries aligned with the country’s economic development plans. Registering a company under the BOI can provide significant benefits, including tax exemptions, relaxed foreign ownership rules, and simplified work permit procedures. This article outlines the essential steps, qualifications, and advantages of BOI registration in Thailand.

1. Understanding the BOI’s Role and Objectives

The Thailand Board of Investment is tasked with promoting foreign direct investment (FDI) in sectors that are considered essential for Thailand’s economic growth, technological advancement, and global competitiveness. The BOI focuses on high-tech, innovation-driven, and value-added industries, such as:

• Digital technology and software development

• Biotechnology and medical devices

• Robotics and automation

• Renewable energy

• Smart electronics

• Automotive and aerospace

• Agriculture and food processing

By supporting these sectors, the BOI aims to transition Thailand from a manufacturing-based economy to a value-based, innovation-driven economy, as outlined in its “Thailand 4.0” development strategy.

2. Eligibility Criteria for BOI Promotion

To register a company under the BOI, investors must meet certain eligibility requirements:

• Engage in a promoted activity listed by the BOI

• Minimum investment requirement, typically excluding land and working capital (amount varies by sector)

• Demonstrate technological capability or potential contribution to knowledge transfer

• Employ Thai staff, or engage in employee training

• Implement sufficient environmental and safety standards, particularly in manufacturing

BOI promotion is not guaranteed and is subject to a detailed review of the business plan, technology usage, and alignment with national priorities.

3. Benefits of BOI Promotion

Registering a company under the BOI provides numerous benefits not usually available to non-BOI companies:

A. Tax Incentives:

• Corporate income tax (CIT) exemption for up to 8 years, depending on the project type

• 50% CIT reduction for 5 additional years in some zones

• Import duty exemptions on machinery and raw materials used in production

• Double deduction for utility costs

• R&D expenses can be deducted at a higher rate

B. Non-Tax Incentives:

• 100% foreign ownership is allowed in most BOI-promoted activities

• Permission to own land for business operation

• Facilitated visa and work permit issuance for foreign experts and executives

• Fewer restrictions on foreign remittances and dividend payments

These incentives can significantly lower the cost of doing business in Thailand, especially for capital-intensive and high-tech industries.

4. Steps to Register a BOI Company

The process of registering under the BOI typically involves the following key steps:

Step 1: Feasibility Study and Business Plan Preparation

Before applying, investors must prepare a detailed business plan outlining the nature of the business, projected investment, job creation, use of technology, and expected contribution to the Thai economy. A well-prepared plan significantly increases approval chances.

Step 2: Online BOI Application

Applications are submitted online via the BOI’s investment promotion portal. Required documents typically include:

• Business plan

• Company profile

• Financial projections

• Project location

• Technology and production process details

Step 3: Interview with BOI Officials

Once the application is submitted, the BOI will schedule an interview or presentation with company representatives. This is an opportunity to clarify the business model, demonstrate industry knowledge, and explain how the project benefits Thailand.

Step 4: BOI Approval

The BOI will review the application and make a decision within 40–90 working days, depending on the size and complexity of the investment. Upon approval, the BOI will issue a Promotion Certificate, which outlines the incentives and conditions.

Step 5: Company Registration

After receiving BOI approval, the business must proceed to register the company with the Department of Business Development (DBD) under the Ministry of Commerce. This step includes:

• Reserving a company name

• Submitting incorporation documents

• Registering for tax and VAT (if applicable)

Step 6: Operational Setup and Compliance

The company must begin operations within the timeline set by the BOI and comply with reporting obligations. Regular updates on progress, employment numbers, and financial performance are expected.

5. BOI vs. Non-BOI Companies

The key differences between BOI and non-BOI companies revolve around ownership structure, tax exposure, and regulatory flexibility.

This comparison shows how BOI promotion can provide a significant edge, especially for businesses looking to maintain full control and minimize initial operational costs.

6. Compliance and Post-Approval Obligations

After BOI approval, companies must adhere to specific conditions, including:

• Commencing operations within a given timeframe

• Hiring and training Thai staff

• Submitting periodic reports to the BOI

• Maintaining financial transparency

Failure to comply may result in withdrawal of BOI privileges or disqualification from future promotions. It is essential to have proper legal and accounting support to maintain compliance.

7. Conclusion

Registering a company under the Thailand Board of Investment is a strategic move for foreign investors looking to establish a long-term presence in Thailand. With benefits such as tax holidays, full foreign ownership, and access to government support services, BOI registration can provide a critical head start in a competitive market. However, gaining these incentives requires careful planning, adherence to regulations, and alignment with Thailand’s developmental goals. For investors who meet the criteria, BOI registration is not just a gateway to Thailand—it’s a launchpad to Southeast Asia.